Chapter 4 Study Questions

Finding ways to reduce the impact of forces in the external environment on the organization is the responsibility of the top managers of the organization, but not the middle managers.

False

For the typical managers, opportunities and threats which result fro changes in the task environment are more difficult to identify than events in the general environment.

False

Groups that buy goods that another organization produces are known as suppliers.

False

In a mechanistic structure, authority is decentralized extensively throughout the organization.

False

In an unstable environment, a mechanistic structure is most likely to help the organization to use its resources effectively.

False

In general, the larger the organization, the fewer the number of forces in the environment to which its managers must respond.

False

The higher the barriers to entry in an industry, the greater is the threat of competition.

False

The less difficult it is to enter the task environment of an industry, the higher are the barriers to entry to this environment.

False

When new competitors enter an idustry, prices in the industry typically increase

False

A good way for the organization to respond to its changing environment is for the organization to change its structure.

True

A shift in the age distribution of the population of the united states is an example of a demographc frce which affects organizations in the united states.

True

AN organization's "competitors" are those organizations which try to sell their goods to the same customers as the organization is trying to sell its goods.

True

Demographic forces in the environment include gender and race.

True

If the environment is stable and there is a low level of complexity, managers can use a mechanistic structure effectively.

True

Organizations that help other organizations to sell their goods and services are known as distributors.

True

The general environment includes the economic, technological sociocultural, political-legal, and international environments.

True

The outcomes of the changes in the laws of a country are examples of the political-legal forces in the environment

True

The suppliers, customers, and competitors which affect the organization's ability to obtain inputs and to sell its outputs are known as the task environment.

True

The technological, sociocultural, demographic, and global forces that affect the organization are known as general environment.

True

Organizations that supply another organization with the raw materials it needs to produce good are known as A. suppliers B. competitors C. distributors D. customers E. potential competitors

A

Typically, when new competitors enter an industry, competition______ while prices ________ A. Increase, decrease B. Increase, increase C. decrease, decrease D. decrease, increase E. none of the above

A

When an organization hires a political lobbyist in an attempt to influence legislators to pass laws that work in the organization's favor, this is an example of which type of boundary-spanning actvity A. gatekeeping and information processing B. representing and protecting the organization C. establishing intraorganizational relationships D. establishing interorganizational relationships E. scanning and monitoring the enironment

A

When managers interact with managers of other organizations in order to obtain information from the environment, this is known as A. Boundary spanning B. economies of scale C. brand loyalty D. gatekeeping function E. demographic forces

A

Factors which make it costly for an organization to enter an industry as a new competitor are known as A. Economies of sale B. barriers to entry C. brand loyalty D. economic factors E. Technological forces

B

If a major competitor of an organization suddenly creates a new type of product that makes the products of its competitors obsolete, this is an example of which type of force in the environment? A. General Environment B. Task environment C. Economic environment D. Legal environment E. Political environment

B

Organizations that are not currently selling goods in a particular task environment but which could choose to enter this environment if they wanted to are known as A. customers B. potential competitors C. distributors D. competitors E. Suppliers

B

The environmental forces that exist in the external environment and that are likely to affect the organization in important ways are known as A. the potential competitors B. the organizational environment C. the suppliers D. the distributors E. brand loyalty

B

The outcomes of changes in the laws of a society are known as A. technological forces B. political and legal forces C. economic forces D. demographic forces E. none of the above

B

When an apparel company hires a researcher whose job is to scan newspapers and magazines in order to spot changes in fashion trends, this is an example if which type of boundary spanning activity? A. gatekeeping and information processing B. representing and protecting the organization C. establishing intraorganizational relationships D. establishing interorganizational relationships E. scanning and monitoring the environment

B

When an organization's customers put pressure on the organization to reduce prices on its goods, this is an example of the organization's A. general environment B. Task environment C. Political Environment D. Legal environment E. Sociocultural Environment

B

All of the following are examples of the general environment of the organization EXCEPT A. demographic forces B. legal forces C. distributors D. global forces E. technological forces

C

In general, the ___ the barriers to entry into an industry, the ____ the number of competitors in that industry and the ___ the threat of competition within that industry. A. higher, greater, lower B. Lower, smaller, lower C. higher, smaller, lower D. lower, greater, lower E. higher, greater, greater

C

In general, the ____ costly and ___ difficult it is for an organization to enter an industry as a new competitor, the ___ are the bariers to entry to this industry. A. more, less, lower B. more, more, lower C. more, more, higher D. less, less, higher E. Less, less, lower

C

Organizations that produce goods that are similar to another organization's goods are known as A. suppliers B. distributors C. Competitors D. Customers E. None of the above

C

The preference of a customer for the products of a particular organization is known as A. economies of scale B. a barrier to entry C. brand loyalty D. boundary spanning E. economies of scale

C

When a competitor negotiates a long tem contract with another organization's supplier of raw materials that organization must find a new supplier of its raw materials. This is an example of an impact on the organizations A. Legal environment B. Political environment C. Task environment D. General environment

C

When an organization gives money to help to establish a political action committee (PAC), this is an example of which type of boundary-spanning activity A. Gatekeeping and information processing B. representing and protecting the organization C. establishing intraorganizational relationships D. scanning and monitoring the environment E. None of these

C

Which of the following is NOT a true statement about changes in an organization's culture A. The choice of a new CEO from outside the organization is often a clear signal that things will be changing B. Rewarding and promoting people whose behaviors are consistent with the existing culture will help maintain the current culture C. Bringing outsiders into important managerial positions will help maintain the current strong culture.

C

Forces that spring from the social structure of a society are known as A. economic forces B. competitive forces C. political forces D. Sociocultural forces E. technological forces

D

Forces within the organization which result from the organization's structure and culture are known as A. the task environment B. the general environment C. the external environment D. the internal environment E. None of these

D

Forces within the organization which result from the organization's structure and culture are known as A. the task environment B. the general environment C. the external invironment D. the internal environment E. none of the above

D

The degree to which forces in the environment change over time is known as A. technological change B. economic change C. sociocultural change D. environmental change E. political change

D

When a manager attends a professional conference in order to obtain information about industry trends from other organizations in the industry, this is an example of which type of boundary-spanning activity? A. gatekeeping and information processing B. representing and protecting the organization C. establishing intraorganizational relationships D. establishing interorganizational relationships E. scanning and monitoring the environment

D

When managers collect trends in the external environment to see how these forces are changing, this is an important aspect of A. reprisenting and protecting the organization B. gatekeeping and information processing C. establishing interorganizational relationships D. scanning and monitoring the environment E. establishing intraorganizational relationships

D

When we say that the population of the united states is "aging" in the sense that the average age of Americans increases every year, this is an example of which type of force in the environment? A. Political B. Economic C. Legal D. Demographic E. Sociocultural

D

All of the following are examples of the ask environment of the organization EXCEPT A. distributors B. customers C. Suppliers D. Competitors E. All of the above

E

If the population of the united states is shifting from the northeast to the southwest, this is an example of which the of force in the environment? A. political B. Legal C. Socioculture D. Economic E. Deographic

E

The cost advantages which are associated with lare organizations are known as A. Brand loyalty B. barriers to entry C. boundary spanning D. gate keeping functions E. economies of scale

E

The cost advantages which are associated with large organizations are known as A. brand loyalty B. barriers to entry C. boundary spannin D. gatekeeping functions E. economies of scale

E

When managers attempt to shape the public's view of the organization in order to make it a more positive one, this is known as A. scanning and monitoring the environment B. gatekeeping and information proccessing C. establishing inter organizational relationships D. establishing intraorganizational relationships E. representing and protecting the organization

E

When organizations enter into agreements with other organizations in foreign countries to obtain resources, this is an example of A. gatekeeping and information processing B. representing and protecting the organization C. establishing intraorganizational relationships D. establishing interorganizational relationships E. scanning and monitoring the enironment

E

Which of the following is NOT a true statement about organizational culture? A. Culture is a powerful force in organizations B. Culture can shape the overall success of an organization C.The culture of an organization should be modified or changed about every 10 years

E

Which of the following is NOT a true statement about strategic alliances? A. Strategic alliances help companies get expertise that they may lack B. Strategic alliances are sometimes formed to protect sensitive competitive information.

E

Which of the following is an economic force in the environment A. Unemployment B. Privatization C. Interest rates D. economic growth E. all of the above

E

Which of the following is an example of a demographic force in the environment? A. Race B. Gender C. Sexual Orientation D. Ethnic Origin E. All of the above

E

Which of the following is an example of a political and legal force in the environment? A. Deregulation B. Privatization C. Emphasis on environmental protection D. Emphasis on safety on the job E. All of these

E

Which of the following is an example of a supplier for Compaq Computer Co.? A. Disk drives from Seagate Technologies B. Operating systems from Microsoft C. Software from America Online D. Microprocessors from Intel E. all of the above.

E

Which of the following is an example of the task environment which faces an organization? A. distributors B. Customers C. suppliers D. competitors E. All of the above

E

Which of the following is included in the organization's general environment? A. Sociocultural forces B. Legal forces C. Technological forces D. Global forces E. All of the above

E

When the external environment is changing rapidly and there is a high level of complexity, the preferred organizational structure should be a mechanistic structure.

False